Kisan Credit Cards

ARTICLES ABOUT KISAN CREDIT CARDS BY DATE - PAGE 2

NEW DELHI: In order to achieve financial inclusion through institutional credit to farming community, an agriculture survey report today suggested issuing of Kisan Credit Cards to all farmers in the country. As a percentage of agricultural GDP , the institutional credit to farm sector has increased to 32.21 per cent in 2010-11 from 11.47 per cent in 2000-2001, the report said. "But small farmers continue to resort to informal lenders (despite Kisan Credit Cards)

Roberto Zagha Country Director, India,World Bank With Niraj Verma, Senior Financial Sector Specialist, World Bank Ensuring that the poor are able to save, smooth consumption , mitigate risks, invest, and build assets is critical to broad-based and equitable development. In the past decade, policymakers broadened their approach to financial inclusion from an almost exclusive reliance on expanding bank branches to innovating and taking advantage of new technology.

PATNA: Bihar government has decided to deposit its capital only in banks which pass a test based on the Credit Deposit Ratio (CDR). "Now banks will require to be successful in the 100 mark test based on CDR for receiving government deposits," Deputy Chief Minister Sushil Kumar Modi, who also holds the finance portfolio, told reporters after a meeting of the State-level Banking Committee (SLBC) here today. The banks are required to score minimum 33 per cent of the 100 digit Index of CDR, agriculture loan, Kisan credit cards and loan for priority sectors.

NEW DELHI: The nearly 10 crore farmers who hold kisan credit cards (KCC) will soon be able to use their card as a deposit account and a debit card. This will help the government scale up its financial inclusion plan quickly without relying on bank accounts alone. KCC, which has been instrumental in faster delivery of credit to farmers, is like an overdraft account with a bank that has to be operated through a cheque book or withdrawal slip. The card is used only to store the details of the account.

NEW DELHI: The Finance Ministry is looking into the possibility of large-scale multiple issuances of Kisan Credit Cards (KCCs) to show higher numbers. This follows discrepancy in the number of outstanding KCC and the actual number of farm accounts maintained by state-run banks. Banks are under pressure to meet the ever-increasing farm lending targets and could be issuing multiple cards to farmers to show higher numbers. By end-December 2010, banks had around 10 crore of these cards against 4.82 crore farm loan accounts in 2009-10 . "We have asked banks to report only the active KCCs.

NEW DELHI: The budget for the next fiscal is likely to step up the target for farm credit to 4,50,000 crore, up 20% from the current year's 3,75,000 crore. With the agriculture sector seen growing at 5.4% in the current fiscal, the government will push banks to disburse more to the sector to maintain the momentum, said a senior government official. The upheavel in the micro-finance sector will also necessitate greater lending by banks. "The micro-finance sector, which has been an important source of credit to the acriculture sector, however, faces some troubles," the government's mid-year review released in December had stated.

THIRUVANANTHAPURAM: The National Bank for Agriculture and Rurual Development (NABARD) will pay greater focus on financing through 'Joint Liability Groups' (JLs) in Kerala as it is found more effective way of priority sector lending. JLs are informal groups of even 4-10 individuals joining together for the purpose of availing bank loans through group mechanisms against mutual guarantee. According to NABARD's State Credit Plan 2011-12, financial inclusion through JLGs would be deepened in partnerships with neighbourhood groups like 'Kudumbasree', NGOSs and Banks.

NEW DELHI: The finance ministry has nudged banks to double the limit on short-term crop loans under collateral-free loans under the kisan credit card scheme, as it looks to increase agricultural credit, but banks are wary of an increase in bad loans. "We are not forcing banks," said a senior finance ministry official, admitting that the ministry has suggested banks to explore the opportunity. "They should do their due diligence as required. However, if there is a case they may ease the norms as applicable," he said, requesting anonymity.

NEW DELHI: The government today said it has achieved 95 per cent of its farm loan disbursal target of Rs 3,25,000 crore for 2009-10 fiscal. Banks extended credit worth Rs 3,08,320 crore to farmers during April-February of last fiscal, against the target of Rs 3,25,000 crore, it said in a statement. "With data for March not available, 100 per cent target is within reach," the government noted. According to official data, banks disbursed credit worth Rs 2,26,045 crore, cooperative banks extended Rs 52,282 crore and regional rural banks lent Rs 29,993 crore loan to the agriculture sector during April-February of last fiscal.

GUWAHATI: Assam government will compensate the farmers for the losses of crop due to agricultural draught in the state. All the 27 districts of Assam were declared to be reeling under agricultural draught in July this year. While in Manipur draught has been declared, Nagaland is reeling under a draught-like situation. Chief minister Tarun Gogoi on Thursday reviewed the situation in the state with minister and officials of different departments. According to the state government assessment, the situation has improved in the past few days due to average rainfall of 28 mm in most parts of the state.